Project
Advise Shareholders on Unsolicited Buyer Interest
Project Trigger
The client had received unsolicited interest from a sophisticated Private Equity (PE) investor to acquire their business.
Our Scope
- Prepare normalised historical and projected financial performance, extract a formalised offer from the buyer, assist to evaluate the offer and advise on any proposed transaction through to its logical conclusion, which in this case is a 'No Go' at the initial offer.
Project Outcomes
- Preparation of normalised historical and projected financial performance reflecting underlying business performance.
- Receipt of a detailed indicative non-binding offer from the PE investor setting out in detail their key terms and requirements around any transaction.
- Evaluation of the offer based on initial investor discussions, underlying business performance, commercial imperatives and owner expectations.
- A decision to walk-away from the offer to pursue organic growth and plan for an exit on a timeframe and circumstances commensurate with owner objectives.
Our Values
- The project established a strategy, with a defined group of executable projects that will deliver a 5-year growth ambition while increasing EBITDA.
Top 3 Tips
Clients seeking advice on unsolicited buyer interest from shareholders should:
- Engage an M&A consultant early in discussions to advise on options and fast track discussions to their logical conclusion.
- Establish detailed offer terms in writing to avoid any misunderstandings and before investing deeply with a potential buyer.
- Realise that a sale of the business on terms, circumstances, and a timeframe that are commensurate with owner objectives are more likely to yield the most favourable outcomes for business owners.
